2018 (5) TMI 395 - AT - Central Excise

Valuation - inclusion of Predelivery Inspection (PDI) charges incurred by the dealers of 2/3 wheeled motor vehicles and thereafter reimbursed by the appellants - Held that - Pre-Delivery Inspection charges is the outflow expenses of the appellant therefore the same by any stretch of imagination cannot be said that the same is on account of any additional consideration - issue is decided in appellant own case COMMR. OF C. EX. CUS., AURANGABAD Versus BAJAJ AUTO LTD. 2014 (7) TMI 229 - CESTAT MUMBAI , where it was held that In the absence of any flow-back from the dealer to the respondent-assessee, the question of including PDI and after-sale service charges in the assessable value of the goods sold does not arise at all - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether Predelivery Inspection (PDI) charges reimbursed by appellants are includible in the assessable value of motor vehicles.

Analysis:
The issue in this case pertains to the inclusion of Predelivery Inspection (PDI) charges reimbursed by the appellants in the assessable value of 2/3 wheeled motor vehicles. The appellant's counsel argued that this issue had already been decided in the appellant's favor for an earlier period by the Tribunal and cited relevant cases to support their stance. The Revenue representative reiterated the findings of the impugned order.

Upon careful consideration, the Tribunal noted that the crux of the issue was whether PDI charges incurred by the appellant's dealers and subsequently reimbursed by the appellant should be considered in the assessable value. The Tribunal observed that PDI charges represent outflow expenses for the appellant and cannot be construed as additional consideration. The Tribunal referenced previous decisions in the appellant's favor and highlighted that the issue was no longer res integara, especially in light of the Supreme Court's ruling in the case of CCE Vs. TVS Motors Co. Ltd. The Tribunal, therefore, relied on its own decisions and the Supreme Court's judgment to set aside the impugned order and allow the appeal.

In conclusion, the Tribunal's decision was based on the interpretation that PDI charges are not part of the assessable value of the motor vehicles, aligning with previous rulings and the Supreme Court's position on the matter. The judgment, delivered on 18/04/2018, favored the appellant based on the established legal principles and precedents cited during the proceedings.